Using Technology to Create a Better Consumer Experience

1. Designing Delightful Encounters
Property Portal Watch
Conference
Bangkok 2015
Opinions and forecasts expressed in this document are those of management as of the date of publication and
management does not offer any guarantee regarding their accuracy. Please note that actual business performance and
results may differ materially from such opinions and forecasts due to changes in various factors.
Copyright(c) NEXT Co., Ltd. All Rights Reserved.

2. Service Overview
2

3. Rent
Buy & Sell
New Homes/Condos
Custom-‐‑‒built homes
Renovation
Investment
Home Insurance
Life insurance
Move
Storage Room
Senior Housing
3
Introduction to “HOME‘S” Service
3

4. 3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Number of Properties Listed
5.34 million
properties
6,985 buildings
Rentals and sales
New homes/condos
1.93 m
(*1) Total properties listed for rentals and real estate sales as of January 2015. NEXT data.
Company
A
Company
B
Company
C
Competitors(*1)
4
2.58 m
1.76 m

5. Change to the pay-per-
inquiry fee structure
(January 1, 2011)
Billing rate
revision
(October 1, 2014)
▲1,621 stores
Note 1: The data shown above are those based on preliminary figures available as of January 2015.
Number of Brokers
Record high
(January 2015)
13,143stores
5

6. “No.1” in user numbers
Site name Operator Site visitors
(million people)
1 HOME'S NEXT Co., Ltd. 2.16
2 SUUMO NEXT Co., Ltd. 1.88
3 Rakuten Real estate
(*1)
Rakuten, Inc. 1.27
4 Yahoo! estate Yahoo Japan Corporation 1.20
5 CHINTAI CHINTAI Corporation 1.08
6 At home web At Home Co., Ltd. 1.08
7 Sumaity Kakaku.com, Inc. 0.33
8 O-‐‑‒uccino O-‐‑‒uccino, Inc. (formerly Homeadvisor, inc.) 0.25
Based on access from home and office PCs (including the use of Internet applications) according to Nielsen NetView February 2015
（*1）Rakuten real estate only posts HOME'S listings as of February 2015.
Number of users
Exclusive
tie-‐‑‒up
6

7. サイト名
得点
HOME’S
7.41
SUUMO 7.31
Mynavi Chintai 6.09
Sumaity‎ 5.97
At home 5.93
HOMEADPARK 5.88
Yahoo! estate 5.64
Rental real estate information site
ranking [Total score]
Gomez real estate information website ranking (December, 2014)
HOMEʼ’S website received a high evaluation in user
experience
Rental real estate information site ranking
[Useful features and other]
順位
サイト名
1 HOME’S
2 SUUMO
3 CHINTAI
4 Mynavi Chintai
5 Yahoo! estate
6 HOMEADPARK
Usability rankings by Gomez
7

8. Ranked “No.1,” “Easiest to use”
Smartphone Site among all Japan
No.4 House foods
No.5 Tokyo Metro
No.6 kakaku.com
No.7 UNITED ARROWS
No.8 NISSAN Motor
No.9 At Home
No.10 Amazon.com
No.1 No.2
Nomura
Securities
ZOZO
TOWN
Usability rankings by Tribeck
8
HOME'S
No.3
(*1)
(*1) Tribeck Strategies Inc.'s "smart phone website usability diagnosis" (published in April 2012)
The surveyed websites included, of the websites of companies providing major services to smartphone users, portal sites, E-commerce sites,
corporate sites, and specialized sites of a specific genre (websites specialized for a specific genre or purpose such as real estate and finance,
etc.) http://www.tribeck.jp/release/120405.html

9. Business Model – Pay Per Lead
Rental
Number of
Inquiries
Old Billing
Rates
New Billing Rates
From Oct 1, 2014
1 to 15 5.5％ 5.5％
16 to 60 4.0％
4.0 ％
61 - 2.0％
Rent/sale price of the
property inquired about
Billing
rates
Number of inquiries from end users
(emails and telephone calls) × ×
Buying/Selling and Investment
Number of
inquiries
Old Rates
New Billing Rates
From Oct 1, 2014
1 to 5 0.05％ 0.05％
6 to 20 0.02％
0.03 ％
21 - 0.01％
Billing calculation formula Revision
Monthly basic fee
(10,000 yen a month) ＋
AfterBefore
Example: One hundred rental property inquiries arrive in one month
15 inquiries × 5.5％ × Rent ＝ ￥ 57,750
45 inquiries × 4.0％ × Rent ＝ ￥126,000
40 inquiries × 2.0％ × Rent ＝ ￥ 56,000
Total ￥239,750
15 inquiries × 5.5％ × Rent ＝ ￥ 57,750
85 inquiries × 4.0％ × Rent ＝ ￥238,000
Total ￥295,750
*Calculated with rent at 70,000 yen. Rent varies from one property to another.
*Monthly rent
9

10. New Technology
10Copyright(c) NEXT Co., Ltd. All Rights Reserved.

11. 11
Strategy - a global company through “DB and CCS”
Analyze individual user preferences,
then select and provide the most
appropriate information
Housing Insurance
Interior
decoration
etc
Needs Appropriate
information
DB Japan and overseas database
Communication &
concierge serviceCCS
Recommendations to support the
decisions of those pushing ahead
Enough choices
Access available from
any device

12. 12
Differences between HOME‘S and SUUMO
Item HOME'S (NEXT) SUUMO (Recruit)
Number of
properties
(January 2015, our investigation)
5.34 million properties 2.58 million properties
Sales
(The results of FY ended March 2014)
14.5 billion yen
86.6 billion yen
Sales of the Internet are 52 billion yen of
above (Our estimation)
Fields of
specialization
Rental &
Real estate trade
New condominiums
Strengths
Vision management
Web technology
Web marketing
Capital strength
Sales strength
Cross-channel
(Printed, Web, Counter)
Company history Established 18 years ago Established 54 years ago

13. HOME’S Data
Real Estate
Agent’s Data
Solution (problem solving)
13
New DMP Services “NabiSTAR “
Our DMP
“NabiSTAR”
Sales growth
Cost Reduction
Personalize
Increase in
requests
for
materials
/
Increase in
visitors
/
Increase in
closing
rates
Customer Data
(Visits and Request for
Materials)
Audience Data from
Each Company’s
Website
Audience Data
Data Integration
Ad Placement
Website Content
Optimization
Email
Delivery
Values Offered
* DMP＝Data Management Platform

14. Smart Device
The iOS and Android applications by
the HOME’S website
Displays a complete set of property information available
with regard to a given building
Allows the user to make a telephone-based property inquiry
just by touching the screen once
HOME’S app for visually-
impaired persons
Equipped with the function to read aloud iPhone texts
Allows the user to search for properties by using the
“VoiceOver” function
Property visit note app
Enables the user to take notes of property information and
his/her impression of the property
Allows the user to view other persons’ assessment and
feedback
Enables photographs to be stored
APP
HOME’S check-in app
Campaign-dedicated application
Allows Rakuten Super Points to be awarded to the customer
for visiting a store and concluding a contract
Users can see a 360-
degree view of properties
Sites for Smartphones

15. O2O Tracking
Using acoustic communication technology to enable an analysis of customer actions from store visit to
property visit to contract conclusion
*INFOSOUND, developed by Yamaha Corporation, is a technology that converts digital information into acoustic signals before transmitting them
Conclude
contract
Visit store &
property
Actions able to be tracked so far Actions newly able to be followed
2
1
Infosound
3
♪
15
Begin
considering
Compare
and
consider
Inquire
Maximize the
number of
contract
conclusions
Install a small-sized speaker in the store
Detect the customer’s store visit by
using acoustic communication
technology
Award Rakuten Super Points to the
customer for making a store visit and
concluding a contract
Analyze the user’s actions
1
2
3
4
Store and property visit tracking scheme

16. 16
Smart Key System

17. 17
“Property Search Map” utilizing tangible user interface

18. Trovit – newly acquired
technology company
18Copyright(c) NEXT Co., Ltd. All Rights Reserved.

19. What is Trovit?
Collectively search
information from
multiple sites
Value to users
Provide quality
traffic
Value to portals
Portal site
C
Portal site F
Portal site
D
Portal site
B
Portal site A
(HOME'S, etc.)
Users all around
the world
Create information
matching with users
all around the world
19

20. A FEW
FACTS
ABOUT
TROVIT
5 verticals 160M indexed
listings
40,000 partners Over 50M
monthly visits
43
countries
20

21. The number of clicks we send to our
partners grows year after year
TROVIT’S CONSTANT GROWTH
2008
2009
2010
2011
2012
2013
2014

22. Number of users of real estate sites in the world
0
10,00 0
20,00 0
30,00 0
40,00 0
50,00 0
60,00 0
70,00 0
Zillow Trovit Trulia R ightm ove R EA soufun
Source: SimilarWeb data as of August of 2014. Regarding Trovit, the number is the total number in all deployment countries. The
breakdown was calculated by us based on the past data. Other information is values taken from the representative sites of each country.
Unit:
Thousand people
Trovit
ES
Housing
Employment
Used car
US US CNAUUK
22

23. 23
SEO technology of Trovit complements HOME’S
Accumulated No.
of key words
Amount of
searches
Domain where Trovit is strong
Domain where NEXT
(HOME’S) is strong
Big/Middle word Tail word
Ex: Words with high search volume such as
[Real estate], [Condominium], [Rental], etc.
Ex: Combination of multiple words such as [Setagaya Ward,
rental condominium, within 10-min walk, pets allowed], etc.

24. GRID VRICK
24

25. GRID VRICK
Can an average consumer imagine his/her
new home from this floor plan?

26. GRID VRICK
“GRID VRICK” is a home/condo simulator.
You can imagine your new home easily!

27. GRID VRICK
“GRID VRICK” can create a virtual house/condo
Fast, Easy and Very Intuitive.
1. Put some LEGO bricks on
the board
2. Generate your 3DCG home
on real time
3. You can change interior
design and walk-through

28. Thank you!
Please take a look at
GRID VRICK demo
outside!
28